Mike Pearson examines some new California environmental standards law and how it impacts more that agriculture.

Last week, the U.S. District of Courts, a lawsuit was filed that challenges the California Corporate Disclosure law.

The laws require businesses to report their emissions throughout the entire supply chain. It's called, the Scope 3 Emissions.

The lawsuit was filed by the American Farm Bureau Federation, American Chamber of Commerce and the California Chamber of Commerce. They contend in the lawsuit that the state of California is overreaching because some of the companies are not in California. They also say the law is infringing on federal government ability to regulate emissions nationwide.

The lawsuit also contends that the new law is forcing businesses to comment on climate topics which violates the first amendment.

The new law would impact 5,300 businesses directly and indirectly to report emissions from greenhouse gases.

The law would also require business to report how climate control impacts their business every other year.

The lawsuit filed says the law would be burdensome on the businesses and would end in the wrong business being reported.

This is a case that will be watched closely by other states that take their lead from California when it comes to the environment.

It's legal drama setting up in California which could shape the future of environmental regulations and corporate transparency.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.